Tag Archives: Babylon Pump & Power

Babylon to provide pump, generator repair services at Rio Tinto ops

Equipment maintenance, Mine operation news, Mining maintenance, Mining services, ,

Babylon Pump & Power Ltd says its Babylon Operations Pty Ltd subsidiary has secured a contract for the supply of offsite repair services with a branch of Rio Tinto.

The contract, with Rio Tinto Services Ltd, does not provide any commitment or guarantee of revenue, but the Babylon board has deemed this contract to be material.

The contract is for the supply of off-site repair services for pumps and generators for multiple Rio Tinto sites. The contract commences immediately upon signing and has an initial term of three years with a two‐year extension.

“Babylon’s Board is grateful for the confidence Rio Tinto has placed in the company and looks forward to continuing a strong and positive working relationship with Rio Tinto,” it said.

Babylon adds to pump rental capacity with Trico agreement

Mineral processing, Mining equipment, Mining services, Water management, , , , , , , , ,

Babylon Pump & Power Ltd says it will expand its rental fleet of pumps through an unconditional agreement for the acquisition of assets from Tilbrook Ryder Investments Company Pty Ltd (Trico).

The transaction, expected to complete on October 1, 2020, will be funded by a cash payment of A$750,000 ($537,817) from existing asset finance facilities and issuance of just over 7 million fully paid shares in line with Babylon’s placement capacity, it said.

“The assets are a valuable addition to Babylon’s existing rental fleet, providing quality pumping assets for immediate use that are traditionally long lead items from OEMs,” it said.

The rental and workshop assets include two Multiflo RF-420EXHV dewatering pumps, multiple other skid-based pump units, ancillary rental equipment to facilitate pumping projects and workshop ancillary equipment to support continued growth, Babylon added.

“Trico’s fleet provides immediate opportunities to increase rental revenue in Western Australia as well as providing assets which can be used in the Queensland rental market as rental activity progresses in Babylon’s Mackay based operating entity, Primepower Qld,” the company said.

The transaction will result in entities controlled by the founders of Trico becoming shareholders in Babylon and the consideration shares will be subject to a one-year voluntary escrow, Babylon explained.

Babylon Executive Chairman, Michael Shelby, said: “This is an exciting opportunity to purchase quality long lead assets at a discount to replacement value. We are confident the assets will be deployed immediately, and on attractive rentals that will deliver a rapid payback of their acquisition cost.

“I am equally excited to have the founders of Trico, Tony Ryder and Dave Tilbrook, as supportive shareholders of Babylon. Both founders have many years of experience in the pump rental and heavy equipment industry and have the ability to offer valuable support and industry insight to Babylon as a rapidly growing company in this sector.”

Babylon wins year-long extension at BHP Mining Area C

Mineral project development, Mining equipment, Mining maintenance, Mining services, Steel and iron ore, , , , ,

Babylon Pump & Power Limited says it has secured an extension of an existing power generation contract with BHP’s iron ore division in Western Australia.

The extension is tied to a contract the Australia-listed firm secured back in July 2018 through ADENCO Water Management & Civil Engineering. This saw Babylon supply, install and maintain power generation equipment for the Surplus Water Pipeline project at BHP’s Mining Area C project in Western Australia.

Babylon says it has since supplied and installed this equipment on site and will continue to maintain it for the project.

BHP is in the process of extending its Mining Area C through the development of the South Flank iron ore project, which is due to start up in 2021. It will be one of the largest iron ore processing hubs in the world, with an 80 Mt/y crushing and screening plant, an overland conveyor system and rail-loading facilities.

Babylon’s extension contract will run for a term of 52 weeks and is expected to contribute circa-A$1.1 million ($663,893) over that period, the company said.

Babylon expands equipment and service offering to BHP Nickel West

Base metals, Mine operation news, Mining services, Power supply for mines, Water management, , , ,

Babylon Pump & Power says it has secured a new power generation and dewatering contract with BHP’s Nickel West division, in Western Australia.

The ASX-listed company has provided dewatering services for BHP since October 2018 and this contract expands on the equipment and services to be provided while securing the existing business for a further three‐year term – from February 1, 2020 to January 31, 2023 – it said.

Last year, Babylon Pump & Power established a rental service base on the East Coast of Australia with the completion of its acquisition of Primepower Queensland. This made it one of the largest independent and diversified engine re-builders in Australia, it said.

Babylon Pump & Power adds Queensland hub to Western Australia base

Mining consumables, Mining equipment, Mining services, Water management, , , ,

Babylon Pump & Power has established a rental service base on the East Coast of Australia with the completion of its acquisition of Primepower Queensland.

The company announced the deal with the leading diesel engine specialist back on July 26, saying it would pay for the company with a mixture of cash, shares, delayed performance payments and assumption of debt.

Primepower was founded in Mackay, Queensland, in 2004, and has a client base including Peabody, Fortescue Metals Group, BHP Mitsubishi Alliance, Anglo American, Wesfarmers and Minerva.

The Primepower buy, according to Babylon, offers:

  • Geographic and technical expansion;
  • Diversification of commodity exposure;
  • Purchasing power and contract synergies;
  • East coast platform to introduce rental services; and
  • Workshop flexibility with no additional corporate overhead.

Post-acquisition, Babylon will be one of the largest independent and diversified engine re-builders in Australia, poised for growth in specialist rental nationally, with a focus on Australia’s two key mining states, Western Australia and Queensland, the company said.

Babylon Pump’s business development efforts power up

Equipment maintenance, Mining equipment, Mining mergers and acquisitions, Mining services, Power supply for mines, , , , , , , , ,

Babylon Pump & Power Ltd has entered into a conditional agreement for the acquisition of diesel engine specialist Primepower Queensland for up to A$4.2 million ($2.9 million) in cash, shares, delayed performance payments and assumption of debt.

Mackay-based Primepower was founded in 2004 and is a specialist in Cummins engine repairs and rebuilds to the Queensland resources sector, Babylon said, with the acquisition complementing Babylon’s Western Australia-based diesel maintenance division and diesel generated power and pumping rental business.

The company has grown into a highly regarded specialist provider of diesel maintenance to the resources sector with a client base including Peabody, Fortescue Metals Group, BHP Mitsubishi Alliance, Anglo American, Wesfarmers and Minerva, Babylon said. Primepower generated unaudited annual revenue of around A$9.1 million for the year to June 30, 2019, and adjusted net profit of some A$600,000.

“The acquisition is Babylon’s first move into the eastern states and forms part of the company’s growth strategy, and provides an ideal platform to expand Babylon’s successful specialty equipment rental business into the East Coast,” Babylon said.

The acquisition provides Babylon’s Diesel Maintenance division with extra scale, in addition to technical expertise in Cummins engines to complement its expertise in Caterpillar engines, Babylon Executive Chairman, Michael Shelby, said. “[It] will be the perfect springboard to introduce our power and pumping rental offering to the East Coast market,” Shelby said. “The acquisition also provides commodity diversity, exposure to a larger client base, many with national operations, and will deliver a step-change in our operating scale and revenue.”

Shelby hinted that this may not prove to be the end of the company’s M&A efforts.

“The resource services and related sectors remain very fragmented, and it has become apparent that there are a number further potential complimentary acquisitions and new business development opportunities available,” he said. “While focusing on its core business, it is Babylon’s intention to explore thoroughly opportunities to expand in conjunction with its strong organic business growth.”

The consideration is comprised of cash on completion of A$1.7 million (adjusted pro-rata for net assets), A$600,000 in Babylon shares, assumption of a A$500,000 trade finance facility, deferred consideration of A$1 million over two years (adjusted for net asset value), additional deferred consideration of A$500,000 conditional on a revenue requirement of A$8.9 million being met in the 2020 financial year.

The Primepower purchase will see Babylon acquire net assets including stock and work in progress of A$3.1 million, and goodwill and plant and equipment valued at A$1.1 million. As part of the deal, Primepower founder and owner, Michael Donegan, will also remain a Primepower executive for a minimum 12 months.

Babylon pumped after winning new BHP contract

Environmental, Equipment maintenance, Mine operation news, Mining equipment, Mining services, Power supply for mines, Steel and iron ore, Water management, , , ,

Babylon Pump & Power has secured a new supply of power generation and dewatering contract with BHP.

Under the contract, Babylon will supply and install power generation and dewatering pumping equipment for the major miner for a minimum term of six months. The works are expected to begin immediately, with commissioning in November. The agreement is estimated to generate some A$670,000 ($472,471) in revenue in its 2019 financial year.

While the contract only has an initial six-month term, the Babylon board said it was “optimistic” an agreement could continue at the end of this period on a rolling basis.

Back in July, Babylon secured a contract through ADENCO Water Management & Civil Engineering to supply, install and maintain power generation equipment for the Surplus Water Pipeline project at BHP’s Mining Area C operation.